Why is My House Worth So Little?

If you’ve had a recent property valuation, you may be pleasantly surprised at the result. Alternatively, you may find that your home is likely to command a lower asking price than you expected. So why is this, and what can you do to resolve it?

In this article, the team at Property Solvers – top UK providers of fast home buying services – can help you.

Getting an Accurate Property Valuation

It is possible to get a ballpark idea of your home’s value by checking the most recent sale prices of similar properties in your area. You can also use free online valuation tools. However, you won’t achieve an accurate valuation unless a specialist surveyor attends your home to inspect it – and its condition – in person.

Ideally, you should seek out several valuations to achieve as clear an idea of your home’s value as possible. If you overprice or under-price your property when selling, you’ll probably be waiting for quite some time to receive offers. You may also incur significant costs.

What are the Possible Reasons for Low Valuation on Property?

If a surveyor values your property significantly lower than you expected, you may be able to find out why via their survey report – or to ask them in person. However, you may be able to get a clearer idea by asking them directly.

Here are a few of the potential answers to the question: “why is my house value so low?”.

A Market Crash

If the local or national market has crashed, homeowners may not be able to sell for as much as they’d previously hoped. Often, this issue can only be resolved by waiting for the market to pick up before selling. Alternatively, you may simply need to accept a lower offer for the property.

If this isn’t an option, a little clever redecorating or renovation can help to boost the price.

New Problems with the Local Area

If major employers nearby have closed down, or if the local crime rate has risen, buyers may be put off making an offer. This will drive the potential asking price down. What’s more, if an unattractive, unpleasant or light-blocking structure has been built nearby, this may drive your home’s value down too.

A similar problem may arise if your neighbours are not properly looking after their own properties, making the neighbourhood look unattractive.

Damage or Disrepair

Whether through neglect or natural disasters, a property may incur structural or cosmetic damage that can seriously bring its value down. Often, this can be easily resolved with a little work. However, if left as it is, it probably won’t be able to command as high an asking price as you might hope.

Problems like damp and the presence of asbestos can also prove very costly to remove, dealing a blow to your home’s potential value.

Outdated Décor

Your home may have a lot of potential, but if it isn’t visually attractive or “on trend”, you may miss out on a chunk of your profits. It’s a good idea to update your home before listing it for sale.

Pests and Invasive Plants / Species

If your property has a pest infestation, or if Japanese knotweed has taken over the garden, value may be lost. This is because any new owner will have to fork out a considerable amount to resolve these problems.

Animals

Pet odour and the damage caused by domestic animals can really put buyers off a property. What’s more, many people are very allergic to pet fur and dander. It can take a great deal to get this out of carpets and furniture.

What to Do if Your Property Valuation is Too Low

If you’ve had a low valuation on a property but you need to sell it, you should first check with the surveyor or estate agent to find out how to resolve the problem. Then you’ll know what to do to get those issues fixed and boost your potential asking price.

You may also decide to seek a second opinion – after all the first specialist may have been mistaken.

Alternatively, if you need a particularly fast sale, you may decide to sell your property via live or online auction. Most bidders there expect to see some “fixer upper” properties that are being sold in a wide range of conditions. Many auction sellers are able to sell on the day. This means you won’t need to wait for offers, and bids may climb far higher than the result of your valuation.

Alternatively, you could opt for a quick home buying service like the one provided by Property Solvers.

Our team of specialists will make an up front, no obligation cash offer on any home. That amount may reach up to 75% of the property’s fair market value. We can close the sale in as few as seven days too. This means you won’t need to wait for buyers.

Whatever the condition of your home, feel free to contact Property Solvers today to see how we can help you.